Dorm PILOT plan draws fire

Thursday

Dec 12, 2013 at 2:00 AM

KINGSTON — The Ulster County Industrial Development Agency took a small step forward Wednesday in making a decision on the tax breaks requested by Wilmorite, the developer of a controversial student and faculty dormitory in the Town of New Paltz.

Jessica DiNapoli

KINGSTON — The Ulster County Industrial Development Agency took a small step forward Wednesday in making a decision on the tax breaks requested by Wilmorite, the developer of a controversial student and faculty dormitory in the Town of New Paltz.

The IDA authorized a public hearing on the requested 25-year payment-in-lieu-of-taxes agreement for the approximately $50 million housing project. Wilmorite applied for the tax breaks almost a year ago, but the IDA had not taken any action as the Town of New Paltz vetted the project.

The planning process is now nearly complete, and the IDA's public hearing will likely be held in New Paltz in January.

The New Paltz Planning Board has already held public hearings, and they've attracted standing-room-only crowds. Many concerns center on the financial effects the new dorms will have on town services, especially if the project receives the PILOT.

The PILOT will save the developer about $32.3 million over 25 years, according to property tax figures provided by New Paltz Supervisor Susan Zimet.

Without the tax breaks, the project would pay about $1.5 million a year in taxes, Zimet said. Under the PILOT requested from the IDA, it would pay about $102,000 in the first year, scaling up by 3 percent each year over the next 25 years.

Tom George, Wilmorite's director of business development, did not immediately return phone calls or emails for comment after Wednesday's meeting.

Tension over the project was noticeable during the IDA meeting. IDA Treasurer Steve Perfit, who led the meeting, limited the public comment to 15 minutes, with two minutes allotted to each person.

A few people gave Zimet their two minutes, and she read a letter asking the IDA to wait for the Planning Board to complete its process before moving forward with a public hearing. She said the project will burden the town's police, emergency and fire services without contributing enough in taxes.

"The course you're on right now is a course of destruction," she said.

John Johnson of New Paltz tried to speak out against the tax breaks during the meeting. After some haggling, Perfit gave him about 30 seconds to speak. He began, and then Perfit interjected, and they both tried to speak over each other.

"Do we have to have you ejected from the meeting?" Perfit said.

Johnson stayed for most of the rest of the meeting, but kept quiet. The kerfuffle was smoothed out by the end of the meeting.

Zimet's request to delay the hearing was denied, but she was glad to hear that the IDA plans to meet with taxing authorities before the public hearing.